NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

PRECIOUS-Gold falls on U.S. rate outlook, platinum at 6-1/2 year low

Published 29/09/2015, 04:28 am
© Reuters.  PRECIOUS-Gold falls on U.S. rate outlook, platinum at 6-1/2 year low
XAU/USD
-
XAG/USD
-
VOWG
-
GC
-
PA
-
PL
-

* Gold traders await U.S. data this week for cues

* VW emissions scandal further weighs on platinum (Updates prices; adds comment, byline, NEW YORK dateline)

By Luc Cohen and Clara Denina

NEW YORK/LONDON, Sept 28 (Reuters) - Gold had its worst session in 2-1/2 weeks on Monday, extending Friday's losses ahead of a key U.S. jobs report later in the week that could boost bets the U.S. Federal Reserve will raise interest rates this year.

Spot gold XAU= fell 1.5 percent to a session low of $1,127.70 an ounce, its biggest fall since Sept 9, and was trading down 1.1 percent at $1,132.53 by 2:15 p.m. EDT (1815 GMT).

Prices extended Friday's declines made after Fed chair Janet Yellen said she expected to begin raising rates later in 2015.

U.S. gold futures GCv1 for December delivery settled down 1.2 percent at $1,131.70 per ounce.

"There's just not enough money flow into the market," said Bill O'Neill, co-founders of commodities investment firm Logic Advisors in New Jersey, noting that given the declines in equities and across commodities on a "flight to safety" day, the lack of interest in gold did not bode well for the market.

O'Neill added that last Friday's U.S. Commodity Futures Trading Commission data showing an increase in speculators' bullish bets on gold in the week ended Sept 22, limiting traders' expectations for gold's upside. ID:L1N11V219

Several Fed officials are scheduled to speak this week, keeping the focus on U.S. monetary policy. Traders will also be closely monitoring economic data, including non-farm payrolls due on Friday, to gauge the strength of the economy.

Non-interest-paying gold has lost about 3 percent this year on fears that demand could take a hit in a higher interest rate environment.

Data on Friday supported the view that the Fed could begin raising rates over the next months. U.S. gross domestic product rose at a 3.9-percent annual pace in the second quarter, up from the 3.7 percent reported last month. ID:nL1N11V0O8

"Interest around $1,141 should continue to support gold over the short-term, while $1,155 will provide resistance," MKS Group said in a note.

Platinum XPT= fell more than 3 percent, touching a 6-1/2 year low of $914.25 an ounce and was trading down 3 percent at $915.74 an ounce on Monday afternoon.

It posted its biggest weekly drop since July last week on fears the Volkswagen (XETRA:VOWG) emissions scandal could dent demand for diesel cars, in which it is used in catalysts. ID:nL5N11T3EN

Palladium XPD= fell 2.3 percent to $645.75 an ounce, following a near 10 percent jump last week, its biggest weekly gain since December 2011. Silver XAG= fell 3.5 percent to $14.55 an ounce.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.